Belated Happy Birthday to PPN 01/24! The UK Government Procurement Policy Note 01/24 (aka PPN 01/24), Carbon Reduction Contract Schedule, was published on 18th March 2024 and became effective immediately.
You may not have heard of it as, unlike PPN 06/21, it is not directly aimed at suppliers. But as new government bids open and ongoing contracts approach renewal, the details of PPN 01/24 will become increasingly important to supplier organisations.
Here’s an overview.
Net Zero foundations
PPN 06/21 came into effect in September 2021. It introduced a Net Zero requirement for suppliers bidding on major contracts defined as having an anticipated value of £5 million or more per year. The policy note requires organisations bidding on or renewing such contracts to measure emissions and publish an annual statement detailing their Scope 1, 2 and 3 GHG emissions, committed reduction targets, and a plan to achieve Net Zero by 2050.
Who are the contracting organisations?
PPN 01/24 builds on supplier obligations under PPN 06/21 by providing guidance to contracting organisations that strengthen monitoring, reporting, and accountability for emissions reduction. In-scope government contracting organisations include:
- UK central government departments including ministries, the Home Office, etc;
- Executive agencies like the DVLA and the Met Office; and
- Non-departmental public bodies such as the Environment Agency and the Health and Safety Executive.
This is not a comprehensive list. The policy note is aimed at these in-scope government contracting organisations but others, such as local authorities, NHS bodies, and higher education institutions, may elect to use PPN 01/24 as a framework for carbon reduction plan oversight.
Support for progress monitoring
PPN 01/24 guidance takes the form of a Carbon Reduction Schedule, which includes:
- standard T&Cs to support contract-specific decarbonisation objectives, and
- a framework to monitor and assess supplier decarbonisation performance.
The framework supports contracting organisations to define contract-specific GHG emissions reporting and require reporting on emerging GHG hotspots, key decarbonisation opportunities, and annual progress against emissions reduction targets.
These requirements may be challenging to meet, particularly for smaller organisations. The guidance acknowledges that levels of maturity and resourcing varies amongst suppliers. The use of the schedule is optional, and SMEs and Voluntary Community and Social Enterprise (VCSE) suppliers are given special consideration to ensure the requirements are relevant and proportionate to the contract.
Any PPN 01/24 questions?
At Grain we have wide experience supporting clients with carbon footprinting, carbon reduction plans, and PPN 06/21 compliance. Our expertise makes us an ideal partner for support on PPN 01/24 contract-specific GHG emissions reporting as well as identifying GHG hotspots and decarbonisation opportunities.
